Home Ethereum Bitcoin, Ethereum and XRP Prepare for Volatility; Bullish or Bearish?

Bitcoin, Ethereum and XRP Prepare for Volatility; Bullish or Bearish?

10 min read

  • Bitcoin and Ethereum are consolidating inside a slender buying and selling vary.
  • Bitcoin could have resumed its macro-uptrend, stated a famend technical analyst.
  • XRP prepares for a significant occasion that would set off a rise in demand.

Last week, the full crypto market capitalization surged over 40% to succeed in a excessive of $267 billion. During this time, roughly $77 billion was injected into the market. Bitcoin jumped over 42% whereas Ethereum and XRP rose almost 30%. Despite the bullish impulse, these cryptocurrencies entered a consolidation part and could possibly be on the verge of a major breakout.

Bitcoin (BTC)

After an enormous $3,150 upswing that occurred between Oct. 23-26, bitcoin appears to have stabilized inside a buying and selling vary. This space is outlined by the decrease and higher Bollinger bands that sit round $9,055 and $9,450, respectively. As the Bollinger bands squeeze, indicating low volatility, they foresee {that a} interval of excessive volatility could possibly be underway. Trading between these assist and resistance ranges poses high-risk publicity and should be thought of a no-trade zone.

If bitcoin strikes beneath $9,055, the promoting strain behind it might enhance, taking it to $8,550 or $7,900. On the opposite hand, a spike in quantity that permits this cryptocurrency to interrupt above $9,450 could possibly be succeeded by an additional upward advance to $10,000 or $10,800.

Bitcoin is consolidating between $9,055 and $9,450. | Source: TradingView

CCN reached out to Michaël van de Poppe, a full-time dealer based mostly in Amsterdam, to assemble his opinion concerning the present state of the market. The technical analyst believes bitcoin has bottomed out and already begun a brand new uptrend.

According to van de Poppe:

“Bitcoin has bottomed out of the correction wave and is in a ‘range’ period right now. This means that the period is seemingly comparable with February-March of this year in which Bitcoin makes some concise movements up or down, to continue [going up] afterward.”

Under the present circumstances, van de Poppe expects that BTC might retest the $8,600-$8,800 space earlier than breaking upwards. The upswing might push this cryptocurrency in the direction of $11,000, concluded the analyst.

Ethereum (ETH)

Like bitcoin, Ethereum entered a consolidation interval after the sudden spike it skilled between Oct. 23-26. Since then, Ethereum has been largely buying and selling between $180-$188.

The low degree of volatility ETH is experiencing compelled the Bollinger bands on the 4-hour chart to squeeze. This technical index estimates {that a} robust breakout will happen if the squeeze prolongs for an prolonged interval.

Thus far, the Bollinger Bands have been squeezing for over every week; if this cryptocurrency strikes beneath $180, an additional correction to $170 or even $160 is more likely to occur. Conversely, surging above $188 might set off a rise in demand for Ethereum, leading to a transfer to $197 or $213.

The Bollinger Bands are squeezing, signaling that Ethereum will undergo a interval of excessive volatility. | Source: TradingView

Nonetheless, van de Poppe noticed that Ethereum recently broke out of a falling wedge pattern. This is a technical formation that usually estimates a trend reversal from bearish to bullish. As a result, a spike in volume could take ETH to $230, said Michaël.

“Ethereum broke out of a falling wedge structure, which was massive due to the support and resistance flip of $160. I’d be wanting to see whether $173-175 holds as support. If it does, we can start targeting upwards levels around $230,” added the technical analysis specialist.

Ethereum broke out of a falling wedge, according to Michaël van de Poppe. | Source: TradingView


The recent upswing seen across the entire market allowed XRP to bounce off the bottom of an ascending parallel channel that has been developing on its 4-hour chart since Sept. 26. Even though the sudden increase in volume got this cryptocurrency to hit the top of the channel, it was not strong enough for a further advance. XRP then pulled back to the bottom of the ascending parallel channel and continues to trade around this area since then.

If XRP breaks below the lower parallel line of the channel, it could plunge to $0.266 or $0.24. However, van de Poppe stated that this cryptocurrency could likely benefit from the “Swell FOMO,” like it always does.

XRP is trading within an ascending parallel channel. | Source: TradingView

As explained in a previous article, Ripple’s Swell is an invite-only annual conference that brings together some of the most prominent figures in the financial services and payments sector. XRP could skyrocket in anticipation of the announcements that will be made during the event, which takes place between Nov. 7-8.

A close above the $0.30 resistance level could allow XRP to jump to $0.47, as stated by the 40-years trading veteran, Peter Brandt.

Overall Sentiment

After last week’s upswing, the top three cryptocurrencies by market cap have been staggered within a trading range. As a result, their volatility decreased substantially in the last few days. CryptoVince, a well known dealer within the crypto group, informed CCN that, in the intervening time, the market is giving “mixed signals.” Due to this truth, Vince believes that the general sentiment is impartial.

“I want to see if buyers can defend Bitcoin’s price above $9,000 and if it can stay above the 200-day moving average. If not, I will be looking at the daily breaker block around $8,000. On the other hand, in case of a bullish breakout, I would like to see BTC holding above the 100-day moving average,” added CryptoVince.

Based on these numerous views, it looks like it is going to be wiser for buyers to attend for affirmation earlier than coming into a commerce.

Disclaimer: The technical evaluation above shouldn’t be thought of buying and selling recommendation from CCN. The author owns bitcoin, Ethereum, and different cryptocurrencies. He holds funding positions in several cryptos however doesn’t interact in short-term or day-trading.

This article was edited by Sam Bourgi.

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